The State of Illinois has increased the income tax rates beginning on July 1, 2017. For individuals, trusts, and estates, the Illinois Income Tax is increasing from 3.75% to 4.95%. For corporations (excluding S corporations), the Illinois Income Tax is increasing from 5.25% to 7%. There is no change in the Illinois Replacement Tax rate…. …Continue Reading
The 2017 standard mileage rate for business drops to $0.535 per mile. The rate was $0.54 in 2016.
The IRA contribution limit for 2016 is $5,500. This amount is unchanged from 2014 and 2015. For those age 50 and older, the limit is $6,500. But, if the taxpayer or a spouse is covered by a retirement plan at work, they may not be allowed to make a traditional or Roth contribution, or the contribution amount… …Continue Reading
An S corporation can only have one class of stock. If it violates this requirement, it may cause the corporation to lose its eligibility to be an S corporation. An S corporation is treated as having only one class of stock if all of the outstanding shares of stock confer identical rights to distribution and… …Continue Reading
A single-member LLC that does not file a classification election will be classified as a disregarded entity. Income and expenses from the business will be reported on Schedule C with the owner’s income tax return. The member has the option for the LLC to not be classified under these default rules by filing an election…. …Continue Reading
S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double… …Continue Reading
The 2016 rate for business driving is 54 cents per mile, down from 57.5 cents per mile in 2015. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.
The Protecting Americans from Tax Hikes Act of 2015 permanently extends the tax-favored business expensing provision at $500,000 with a $2 MM investment limit before the phaseout. Beginning in 2016, these amounts will be indexed for inflation. The Act also made permanent the 15-year depreciation for qualified leasehold improvements and removes the $250,000 cap beginning… …Continue Reading